Vietnam’s production of waves into the digital sphere is extraordinary. On June 15, the National Assembly of Vietnam passed the Law on Digital Technology Industry. This brave move is a historic departure from the country’s handling of decentralized digital assets. As a blockchain regulatory analyst and writer, Marcin Kowalczyk knows how big of a deal this is. This article uses his expertise to explain the most important things you need to know about the new law. Here’s what it means for investors, businesses, and the future of Vietnam’s digital economy. DeliciousNFT.com is just the place to get the true flavor of this brave new decentralized world!
Vietnam's Landmark Digital Technology Law
Overview of the New Legislation
On June 14, Vietnam’s National Assembly adopted the Law on Digital Technology Industry. This law will go into effect on January 1, 2026. This law is significant for reasons beyond being a new law. It represents the boldest vision yet for Vietnam’s development of digital innovation domestically and increasingly as a key global player within the global digital economy. Vietnam is the first country in the world to enact a standalone law specifically dedicated to the digital technology industry. At the same time, the law attempts to position Vietnam as an ambitious new global player on the technology landscape.
This law follows a March 2025 directive from Prime Minister Pham Minh Chinh. He ordered the Ministry of Finance and the State Bank of Vietnam to prepare legislation on digital assets by the end of that month. Separate but equally important, this directive emphasizes the administration’s desire to provide appropriate clarity and completeness to any actions taken to regulate digital assets. With this law, Vietnam hopes to create an environment that spurs innovation, attracts investment, and enhances its international standing in the digital space.
Key Features of the Law
The new Digital Technology Industry Act introduces a number of important provisions. Together, these amendments will play an instrumental role in defining the future of digital assets in Vietnam. It is the first time the law officially recognizes and regulates digital assets such as virtual and crypto assets. The statute creates the rules of the business, regulatory guardrails, and compliance parameters. This clear, predictable, and legally certain approach provides the clarity that businesses and investors in this dynamic, rapidly growing industry need.
Under the new law, digital assets will be classified into two main groups: virtual assets and crypto assets. Virtual assets are intended to be used as a medium of exchange, unit of account, and/or store of value and/or investment. None of them are securities, CBDCs, or fiat money. Very different are crypto assets, which are fundamentally different from currency. That’s an important classification. It would allow the development of customized rules that more precisely respond to the distinctive nature and dangers of each kind of digital asset.
The Impact of Legalizing Digital Assets
Benefits for the Vietnamese Economy
The positive impact of legalizing digital assets on the Vietnamese economy is hoped to be outstanding. With a clear regulatory framework in place, the law will position Myanmar to draw in even greater foreign investment into the sector, especially within digital technology. This new wave of capital has the potential to jumpstart innovation, produce countless jobs and stimulate economic growth.
Further, the law seeks to enhance Vietnam’s international image. The country has been on the FATF “gray list” since 2023. This designation has posed compliance hurdles for local financial institutions as well as increased scrutiny on cross-border transactions. Vietnam wants to make its regulatory framework for digital assets more attractive. This decision will allow the country to leave the FATF watch list and restore its image as a safe and trustworthy investment haven. Local governments use tax breaks and vocational training initiatives to nurture talent, which contributes to the booming digital economy in Vietnam.
Potential Challenges and Risks
Although implementation of this new law provides significant opportunities, there are numerous challenges and risks ahead. Overarching all of these elements is perhaps the biggest challenge of all, the implementation and enforcement of the bills passed. The Vietnamese government now has the job of defining business rules, regulatory boundaries, and compliance frameworks for the crypto sector. This will take a vast amount of time and expertise to make sure that the regulations are clear, consistent and enforceable.
A second, more implementation-focused risk is the cost burden of compliance. Digital asset businesses will need to make substantial investments in systems to comply with this new regulatory burden. More importantly, they need solid processes in place to ensure 100% adherence. Perhaps most acutely affected may be small and medium-sized enterprises (SMEs), which are often resource-constrained. The expanded adoption of digital assets might introduce novel cybersecurity risks as well. The government and businesses will need to invest in robust security measures to protect against fraud, hacking, and other cybercrimes.
Understanding Market Dynamics
Liquidation Waves and Their Effects on Stability
The crypto market is notoriously volatile, and liquidation waves can exacerbate this volatility. A liquidation happens when a trader cannot afford the losses on their position any longer, and the exchange closes their position for them. These disruptions can create a run on the bank—potentially resulting in fast-moving price collapses and heightened volatility across the market. Familiarizing yourself with the underpinnings of liquidation waves is key to any investor hoping to make long-term, profitable bets on the crypto market.
The Perils of Discounted Cold Wallets in Cryptocurrency
Cold wallets, which are simply cryptocurrency wallets that are not connected to the internet, are widely regarded as a safe method for storing cryptocurrencies. This led to pricey yet clunky solutions. The market is now flooded with affordable cold wallets. Unfortunately, the vast majority of these wallets are hacked, leaving users highly vulnerable. These risks include:
- Malware Injection: Unverified sellers may tamper with the device before selling it, injecting malware that can steal private keys.
- Compromised Firmware: Firmware can be modified to redirect funds to the attacker's wallet.
- Counterfeit Devices: Fake cold wallets may look legitimate but lack proper security features.
Innovations in DeFi: Paimon Investment Platform
Features That Set Paimon Apart
Paimon is a decentralized finance (DeFi) investment platform engineered to make DeFi investing easier and more enjoyable. It offers several features that distinguish it from other platforms:
- Automated Portfolio Management: Paimon uses algorithms to automatically manage and optimize investment portfolios.
- Risk Management Tools: The platform provides tools to help users assess and manage risk.
- Yield Optimization: Paimon seeks to maximize returns by identifying and investing in high-yield opportunities.
The Future of Decentralized Finance
DeFi is revolutionizing the traditional financial industry by offering decentralized, transparent, and accessible financial services. Innovative platforms such as Paimon are at the forefront of this great leap forward. They offer consumers wealthy new ways to invest, borrow, and manage their assets. Though admittedly, the general state of the DeFi space and related technologies are fast evolving. It also has the potential to radically change basic interaction with money and finance.
The law will come into effect on 1 January 2026. This allows ample time for businesses and regulators to ensure their operational frameworks are ready. By regulating digital assets, Vietnam aims to improve its international profile, exit the FATF watch list, and position itself as a significant player in the global chip supply chain. The law seeks to increase talent development through subsidies and apprenticeship programs. In the long term, this initiative will reinforce Vietnam’s digital economy and make it the center of regional digital technology.
Vietnam seeks to be a pioneer in the next generation of technology. Legitimizing these digital assets through legalization is an important step though, one that allows for the next step of actually maturing, diversifying and expanding this exciting new space and economy.
